Some tech-savvy consumers are betting on prices rising even further as investors seek safe havens, and are pumping funds into so-called digital gold.
“Consumers are buying digital gold in bits and pieces because it enables you to buy gold for… as little as one rupee,” said Rajesh Khosla, spokesman for the India Bullion and Jewellers Association.
“When they… need to convert digital gold to physical gold, it will be delivered to them,” he told AFP.
Gold will eventually make a comeback in India as consumers recover their appetite, said Somasundaram P.R., managing director of WGC’s India operations.
“People who saved money because of cancelled holidays or expenditures (will) invest in gold,” he told AFP.
But with the economy still in the doldrums and coronavirus infections approaching three million, would-be consumers like Ahire say they would prefer to wait it out.
“It seems better to hold onto (my) money right now,” he said.
“With the global pandemic, economic downturn and weak employment prospects, I will not risk my financial stability for gold. It just seems like a terrible idea.”
PICTURES BY INDRANIL MUKHERJEE/afp